Consumers See Payoff in Consumer Activism
Perhaps it’s must me, but I believe that employers should provide healthcare insurance to full-time employees. Perhaps this attitude of mine comes from my employment history of white-collar office jobs, and that I don’t know what it’s like for working people in service industries such as restaurants and hotels. Is it normal to put in a 40 hour week and not have the option of having health insurance, paid either in full or in part by your employer? After all, doesn’t the guy sitting behind the desk calling the shots get health insurance? Isn’t there strength and bargaining power in numbers?Darden Restaurants, Inc., found out recently that consumers care about the character and integrity of companies that they patronize. After announcing that they would scale back the hours of many of their full-time employees in order to limit healthcare costs, they saw a bump in business that made them change their tune. Customers and employees bombarded them through social media and their website to voice their disapproval.
Today’s consumer has less money to spend on dinners out. They have fewer dollars to spend on clothing, jewelry and movies. They are selective about where those dollars are spent. Although I don’t spend a lot of money going out to dinner, I do love those garlic cheese biscuits at Red Lobster (a Darden restaurant) and it wasn’t easy for me to turn my back on a favorite restaurant, but I did. I was appalled to hear about their cost-savings efforts on the backs of their lowest paid, most vulnerable employees, and I cut them off my list. Apparently a lot of other consumers did the same thing, because they have lowered their profit outlook for the year and are changing their tune. They are now saying that they find that their restaurants perform better and employee and customer satisfaction is higher where they employ full time hourly employees.
Ya’ think? Of course your employees are happier if they know they won’t be ruined financially because of an illness. This is common sense.
Let’s see if Darden Restaurants, Inc., can recover from the public backlash. In the meantime, let’s continue to consume wisely.

